Palm Tran Connection operator wants to avoid $2 million in fines

November 7, 2013|By Andy Reid, Sun Sentinel

The company operating Palm Beach County's troubled busing service for the disabled and elderly has proposed the county waive more than $2 million in fines as part of its pitch to get out of a 5-year contract.

After a year of criticism for delays, accidents, dirty buses, maintenance backlogs and other service problems, Metro Mobility is in talks with county officials about getting an early exit from the $90 million contract to operate Palm Tran Connection.

The company's initial settlement proposal calls for the county to waive fines accrued for contract violations, according to documents the county released Thursday.

The proposal from Metro Mobility also calls for the county's next transit provider to pay between $1.5 million and $1.7 million to acquire its vehicles.

It calls for Metro Mobility to continue operating Palm Tran Connection's door-to-door, call-ahead transit service for at least a year while the county look for a successor. The company has also said it could keep operating Palm Tran Connection for up to 18 months.

The company's settlement proposal also calls for retention bonuses totaling $96,000 for "key employees" to help keep the service going during the transition period.

Waiving all the fees — called "liquidated damages" — that Metro Mobility accrued for service problems could be a tough sell for county officials who have been inundated with complaints from frustrated Palm Tran Connection riders.

Metro Mobility in August 2012 started a 5-year contract to handle transportation for Palm Tran Connection. The county in a cost-cutting move opted to make Metro Mobility the primary operator of Palm Tran Connection, instead of using multiple providers.

Service problems have plagued Metro Mobility from the start and commissioners in July gave the company until this month to bring in help. Instead, Metro Mobility is angling to exit the contract.

Metro Mobility attorney Neil Schiller has said it was a "financial decision" for the company to explore a settlement and that the looming fines were "a very big liability for us."